BRIDGING HEALTHCARE AND COMMUNITY
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1 BRIDGING HEALTHCARE AND COMMUNITY The Evolving Payment, Policy & Public Health Pathways to Value Ann M. Forburger, MS Na#onal Associa#on of Chronic Disease Directors Bo Nemelka, MPH Leavi5 Partners
2
3 Overview!! Why a Community-Clinical Linkage Model is Critical! What s Advancing this Model? The Intersection of Payment and Policy! How is the Community-Clinical Linkage Model Working?
4 Key Terms! Triple Aim! Community-Clinical Linkages! Community Sector! Clinical Sector
5 Why a Community-Clinical Linkage Model is Critical!! Epidemiological trends! Financial trends! Cultural trends! Payment and Policy trends
6 Epidemiological Trends!! Determinants of Health! Social Determinants of Health! Burden of Chronic Diseases! Health Disparity Gaps! Aging Baby Boomers
7 Epidemiological Trends! Determinants of Health Social Health Care Genetics Behavior Environment SOURCE: Adapted from McGinnis, 2002.
8 Epidemiological Trends! Social Determinants of Health The Henry J. Kaiser Family Founda#on
9 Epidemiological Trends! The Burden of Chronic Diseases Current ProjecAons of U.S. Cases of Diabetes by Millions of Americans million 60.7 million
10 Epidemiological Trends!! 30 million Americans have diabetes! 84 million Americans have prediabetes! 9 out of 10 adults with prediabetes don t know they have it
11 Epidemiological Trends! Health Disparity Gaps Persist
12 Epidemiological Trends! Health Disparity Gaps Life Expectancy in Years
13 Epidemiological Trends! The Silver Tsunami! By 2050 America s senior populaaon will nearly double to 83.7 million
14 Financial Trends!! Cost of health care and chronic disease is not sustainable! Mismatch between the drivers of health and health care spending! The US is the highest spender on health care
15 Cost of Chronic Diseases!
16 The Spending Mismatch
17 Percent Health Care Spending as a Percentage of GDP US (17.1%) FR (11.6%) SWE (11.5%) GER (11.2%) NETH (11.1%) SWIZ (11.1%) DEN (11.1%) NZ (11.0%) CAN (10.7%) JAP (10.2%) NOR (9.4%) AUS (9.4%)* UK (8.8%)
18 Cultural Trends!! Health and wellness continue to be a priority where Americans live, work, play and pray! Social networking innovations in health! Mobile/wireless technology
19 The Intersection of! Payment and Policy!
20 Alternative Payment Model (APM) Framework Category Category 1 Category 2 VBM DescripAon FFS with no link of payment to quality: payments based on volume FFS with a link of payment to quality: a portion of payment varies based on established quality or efficiency criteria Category 3 APM APM built on FFS architecture: delivery of service remains payment trigger but includes risk components Category 4 APM Population-based payment: clinicians/organizations are paid and held accountable for care of an individual for defined period of time (e.g. 12 months) 2017 LEAVITT PARTNERS 20
21 Quality Payment Program (MACRA Legislation) The Medicare Access and CHIP Reauthorization Act of 2015 (MACRA) is bipartisan legislation signed into law on April 16, Affects Physicians, NPs, PAs, and CNAs What does QPP do? Replaces the Sustainable Growth Rate (SGR) Formula Streamlines multiple physician quality incentive programs Alters Medicare physician reimbursement to reward value, rather than volume 2019: MIPS vs APM? MIPS Default track Advanced APM (most clinicians) Clinicians must qualify 2017 LEAVITT PARTNERS 21
22 Policy Foundation For Value CPC+ BPCI Models 2, 3, & 4 Medicare Part B Drug Payment Model Cardiac Rehab Incentive Payment Model Cardiac Episode Payment Models Million Hearts: CVD Risk Reduction Model Comprehensive ESRD Care Next Generation ACO Home Health VBP Model MA Value-Based Insurance Design Model Part D Enhanced MTM Model CJR Oncology Care Model Medicare Care Choices Model MSSP Maryland All- Payer Model Voluntary Mandatory 2017 LEAVITT PARTNERS 22
23 South Dakota Value-based Innovation! Health Care Innovation Awards! Transforming Clinical Practices Initiative! Acute Myocardial Infarction Model (AMI)! BPCI Initiative 2 & 3! Coronary Artery Bypass Graft (CABG) Model! FQHC Advanced Primary Care Practice Demonstration! Medicare Care Choices Model! Selected for AMI-CABG Model Source: CMS Innovation Center, LEAVITT PARTNERS 23
24 Evolving Relationships Innovative offerings People Increased consumerism Payers / Purchasers Public Health Enhanced collaboration Providers Expanded accountability 2017 LEAVITT PARTNERS 24
25 Types of Insurance Medicare Medicaid Medicare FFS: Hospital and Medical coverage administered directly through the federal government MA: Medicare Advantage plans sold by private insurance companies that provide Medicare benefits FFS MA FFS MCO Medicaid FFS: Insurance coverage administered jointly through federal and state governments to low-income individuals/families MCO: Managed Care Organizations provide delivery of Medicaid health benefits via contracts with a state Medicaid agency Self- Insured Fully- Insured Commercial Individual HIX Other (Federal, state, unions, etc.) Commercial Self-Insured: Employers accept financial risk and administers its own health insurance plan (82% of employers with 500+ employees self-insure * ) Fully-Insured: Employers pay an insurance company who assumes financial risk for their employees Individual: Consumers purchase individual/family plans from private insurance companies and pay full premiums out of pocket HIX: Consumers purchase individual/family plans from the state- or federally-based insurance exchange; federal subsidies are available based on income to reduce monthly premiums Other: Group coverage obtained through an option not associated with an employer, HIX, or individual plan; i.e., federal, state, or union plans, etc. Public Private *Source: Department of Health and Human Services, LEAVITT PARTNERS 25
26 Brokers / Benefits Consultants An individual or firm that advises an employer or plan sponsor in matters relating to group insurance or employee benefits. Benefit Consultants advise employers on an array of employee benefits insurances, investing, legal, health/wellness, etc. Brokers match employers needs (i.e. health insurance) to the right seller (i.e. payer) at the optimal price. Remember, selfinsured employers bear financial risk for employee health, but still contract with a third-party payer for administrative capabilities. Fully-insured employers shift the financial risk and administration to a payer. In Progress Source: Leavitt Partners analysis for The Council of Insurance Agents & Brokers 2017 LEAVITT PARTNERS 26
27 The Accountable Care Movement Low Payer Savings High Fee for Service Care Management Pay for Performance Shared Savings Shared Savings / Shared Losses Partial Capitation Full Capitation Pre-ACO Fee for Service: A traditional payment system in which provider organizations receive separate payments for each individual service provided to patients Care Management: A payment to provider organizations for certain nonface-to-face care coordination services furnished to patients with multiple chronic conditions Pay for Performance: A payment approach in which provider organizations are rewarded or penalized based on adherence to predetermined quality metrics, such as meaningful use, patient quality, or value-based purchasing ACO Shared Savings: A payment approach whereby a provider organization shares in the savings (but not in the losses) that accrue to a payer when actual spending for a defined population is less than a target amount Shared Savings / Shared Losses: A payment approach whereby a provider organization shares in the savings and losses that accrue to a payer when actual spending for a defined population is less or more than a target amount Partial Capitation: A payment approach in which only certain types or categories of services are paid on a capitated basis; typical examples of this include capitation for primary care services, specialty care or other services such as mental health Full Capitation: A single payment made to a provider organization to cover the cost of a predefined set of services delivered to a patient Low Provider Risk High Pre-ACO ACO 2017 LEAVITT PARTNERS 27
28 ACO Growth 1600 Total ACOs: 928 Total Contracts: 1,347 ACO Growth vs. Contract Growth Over Time Number of Payment Arrangements # of ACOs # of Payment Arrangements 2017 LEAVITT PARTNERS 28 Source: Leavitt Partners Center for Accountable Care Intelligence
29 ACO Growth By Payer Payment Arrangements ACO Lives Per Payer (in Millions) Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Total Medicare Commercial Medicaid Source: Leavitt Partners Center for Accountable Care Intelligence 2017 LEAVITT PARTNERS 29
30 Community-Clinical Linkages How they work in the real world?
31
32 30 million Americans have diabetes 84 million Americans have prediabetes 9 out of 10 adults with prediabetes don t know they have it
33 The Diabetes Prevention Program Study Results Use of MeTormin Decrease of 31% Lifestyle (Whole Popula#on) Decrease of 58% Lifestyle (over 60) Decrease of 71%
34 Core Elements of the! DPP Lifestyle Change Program!
35 What Are Communities Doing? 1,400 Organizations CBOs YMCA Cooperative Extension Worksites Faith-Based Organizations
36 What is the Clinical Sector doing?! 1. Create awareness 2. Identify patients with prediabetes 3. Educate at-risk patients 4. Refer patients with prediabetes to an evidence-based diabetes prevention program 5. And, follow up on patient progress with feedback loops from community providers
37 What is the Payer/Employer Sector Doing?! National Payers Public and Private Payers Large Employers
38 National Payers $2,640 per Medicare Par1cipant saved in the first five quarters 1 CMS Coverage of the NaAonal DPP CMS expanded coverage of the NDPP to all Medicare Part B beneficiaries beginning January 1, The Na#onal DPP is the first CMS CMMI project to be cer#fied for expansion to all Medicare Beneficiaries. The CMS Office of the Actuary cer#fied that an expansion of the program to Medicare beneficiaries would not increase net-medicare spending. The Ins#tute for Clinical and Economic Review (ICER) stated Providing the NaHonal DPP in a group sejng appears to be cost-saving over Hme LEAVITT PARTNERS 3 8
39 Public and Private Payers 11 States cover the NDPP for state employees Over 60 commercial plans provide some coverage for the NDPP Minnesota and Montana cover the NDPP for Medicaid Beneficiaries. Oregon and MassachuseYs cover the NDPP for some Medicaid Beneficiaries LEAVITT PARTNERS 3 9
40 Large Employers Employers across the nation are making the decision to cover the National DPP lifestyle change program. Par#cipa#ng Employers Costco General Dynamics Bath Iron Works Latham & Watkins University of Michigan New York City University of Utah Health 2017 LEAVITT PARTNERS 4 0
41 National DPP Coverage Toolkit 2017 LEAVITT PARTNERS 41
42 Bringing it all together!
43 The National DPP: Addressing the Triple Aim through Community- Clinical Linkages
44
45 CONTACTS! Ann M. Forburger, MS Senior Consultant, Diabetes Team and Community-Clinical Linkages Lead Na#onal Associa#on of Chronic Disease Directors Bo Nemelka, MPH Director Leavi5 Partners
46 Sources SLIDE 7: SOURCE: Adapted from McGinnis, Priori#es from a Na#onal Academy of Medicine Ini#a#ve - Vital Direc#ons for Health and Health Care March 21, 2017 h5ps://nam.edu/wp-content/uploads/2017/03/vital-direc#ons-for-health-health-care-priori#es-from-a-na#onal-academy-of-medicine-ini#a#ve.pdf SLIDE 8: The Henry J. Kaiser Family Founda#on, Beyond Health Care: The Role of Social Determinants in Promo#ng Health and Health Equity (by Harry Heiman and Samantha Ariga), Nov SLIDE 9: Centers for Disease Control and Preven#on. Na#onal diabetes sta#s#cs report: es#mates of diabetes and its burden in the United States, Atlanta, GA; US Department of Health and Human Services, Centers for Disease Control and Preven#on, 2014 SLIDE 10: Centers for Disease Control and Preven#on. Na#onal diabetes sta#s#cs report: es#mates of diabetes and its burden in the United States, Atlanta, GA; US Department of Health and Human Services, Centers for Disease Control and Preven#on, 2014; 2: h5ps:// 3: Zhang X, Gregg EW, Williamson DF, et al. A1C level and future risk of diabetes: a systema#c review. Diabetes Care 2010;33(7): SLIDE 11: Kaiser Family Founda#on Analysis of the Centers for Disease Control and Preven#on s Behavioral Risk Factor Surveillance System Survey Data (BRFSS), 2011 h5p:// SLIDE 12: h5ps://nam.edu/wp-content/uploads/2017/03/vital-direc#ons-for-health-health-care-priori#es-from-a-na#onal-academy-of-medicine-ini#a#ve.pdf SLIDE 13: U.S. CENSUS BUREAU May 2014 h5ps:// SLIDE 15: h5p:// h5p:// h5p:// SLIDE 16: Data from Network of Excellence in Health Innova#on (NEHI) 2013 h5p:// SLIDE 17: Source: OECD Health Data Australia data is h5p:// Exhibit 1 SLIDE 29: h5ps:// SLIDE 30 & 31:
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